Yesterday Nifty traced lower lows in mid-morning trade after the RBI kept the repo rate unchanged at 7.25.
However the market digested the news and started to trace higher highs in early afternoon trade. At the end of the day the CNX Nifty was up 41.65 points to close at 5,850.05. In our yesterday’s newsletter we informed that the next resistance point for Nifty as 5850 and the market seems have given some respect to our newsletter.

What can we expect from the current situation?

The Next resistance point for the Nifty is 5900 and once it crosses this point we enter into a neutral zone. The most important question lingering in the minds of the investor is “In the current situation can the market go up and trade above 5950?” The market analysts are of the opinion that the worst is over for the Indian economy. However we cannot throw the caution to the wind to buy the equity mainly because there is lack of clarity in the futuristic earnings. The Rupee against the Dollar clearly informs that FII’s are not willing to be in India if there are no reforms. We will have to check if the Nifty can hold above 5500-5600 in the month of June and then only we can take a call. At this point, it is better to consider taking holidays and let the bulls and bears fight it out for the right equation. Today we expect the market to be in a strict range and the market may cool off a bit after a strong two day up move.